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Are Expensive Online Colleges Better Than Cheap Ones?
Financial Aid Information  >  Consumer's College Cost Cutting Guide
By Vicky Phillips, Chief Education Analyst  |  October 13, 2009   
 


I’m searching for an online bachelor’s in business or management. But no two online colleges charge the same amount for this degree. One college can charge $50,000 more for what looks like the very same online degree to me. Is a more expensive online degree better than a cheaper one?

Rayette, Boise, Idaho


There is no relationship between cost and quality in online education. Paying more won’t get you “more” of an education, nor will it necessarily buy you an academically better degree. The cost—and therefore affordability—of any online degree is a function of four factors. It may surprise you to learn that none of these is correlated with educational quality.



Public schools charge less because they are subsidized by your tax dollars. When you attend any public
College grad saving moneycollege you are attending an institution you have already helped support through your federal and state tax dollars. 

Because public colleges receive subsidies through tax funds they do not need to charge you, the student, as much in tuition and fees. Publicly funded residential colleges have always cost significantly less than their private counterparts. Similarly, online colleges that are publicly funded are much more affordable than private online colleges.

GetEducated.com’s national surveys of online college affordability consistently show that the top-ranked least expensive online degrees across all subject areas, ranging from business to healthcare, come from publicly funded or state universities.



It costs less to live in certain regions of the country. For example, it is much less expensive to live in Wyoming than it is to live in Massachusetts. No surprise, then, that according to GetEducated.com’s National Survey of Online Bachelors in Business, the University of Wyoming offers a business bachelor’s online for about $16,000. On the other hand, the University of Massachusetts, headquartered in high-cost New England, charges almost $58,000.



Traditionally, all colleges operated as non-profit agencies. But every year more online colleges are being organized as for-profit businesses. The University of Phoenix Online, operated by the Apollo Group, is the largest online college in the United States. It is also a for-profit company.

Companies that are chartered on a for-profit basis charge more—often two to three times more—for their services.



On average, colleges that are nationally accredited rather than regionally accredited cost less. One reason is because national accreditation is not as widely accepted or as prestigious as regional accreditation.



Paying less for your degree doesn’t mean you will receive less of an education. Compare all your online degree options before you enroll. Your least expensive option will likely come from a local, non-profit, public university.

You can expect to pay two to three times more to attend a private, for-profit college online, but there is no evidence or guarantee that you will receive an academically better online education in exchange.


Regional v. National Accreditation - Which is Better for Online Colleges?
Do I Need an AACSB-Accredited Online MBA?
Who Offers the Cheapest Online MBA?
GetEducated.com Excellence in Online Education Scholarship Program


© 2009, GetEducated.com, LLC

 
 
Ask GetEducated!
Q I’m looking for an online MBA. I’ve found several that fit my budget but none are accredited by the AACSB. What is the AACSB? Do I really need a distance MBA degree that is accredited by them? —Roberta, Gary, IN
A The AACSB is the Association to Advance Collegiate Schools of Business International. It is considered the gold standard of business school accreditation. But not every student needs an AACSB-accredited MBA...
Q I was laid off from my job as a real estate agent and want to be a high school math teacher, but my bachelor’s degree is in psychology. Do I need a new degree in education? Will an online bachelor’s in education qualify me to become a licensed teacher? —Willis, Houston, Texas
A If you didn’t earn a bachelor’s degree in education years ago and you now want to teach in the public schools, don’t fret. Every state maintains what are termed “alternative teacher certification” programs...
 
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